Electronic transaction processor
Global Payments Inc.
), reported relatively modest fiscal 2013 third-quarter (ended
Feb 28, 2013) results with recurring earnings of $67.9 million or
87 cents per share compared with $65.3 million or 83 cents per
share in the year-earlier quarter. Although earnings per share in
the reported quarter increased year over year, it marginally
missed the Zacks Consensus Estimate of 88 cents.
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GAAP EPS for the reported quarter came in at 75 cents per share
compared with 73 cents in the third quarter of 2012.
Total quarterly revenue increased 8% year over year to 578.7
million, marginally below the Zacks Consensus Estimate of $579
million. The healthy top-line growth is attributable to
successful collaboration with financial institutions and other
payment service providers, new product launches and further
innovation in core business along with investments in technology
infrastructure. Operating margin for the reported quarter
declined 1.6% to 15.68% compared with the year-ago quarter.
Region Wise Revenue
All geographic regions except Canada witnessed healthy growth as
: Revenue in this region was up 11% compared with the year-ago
North America Merchant Services
: Revenue was up 8% compared with the year-ago quarter, aided by
US transaction growth of 10%. Global Payments reported operating
margin of 15.5% in the reported quarter compared with 17.3% in
the year-ago quarter.
: Revenues for this quarter declined 6% year over year.
: This region posted strong revenue growth of 13% compared with
the year-ago period.
: Revenues were up a modest 2% year over year as volumes failed
to pick up in this region.
: Revenues in this region grew 10% year over year. Operating
margin in this quarter declined 160 basis points to 35.6%
compared with the year-ago quarter.
Cash and cash equivalents were $682.96 million at quarter end,
while long-term debt was $883.5 million. Cash from operating
activities was $204.8 million during the first nine months of
fiscal 2013 compared with a negative $226.8 million in the
comparable period in the previous fiscal. Capital expenditure in
the period came in at $21 million.
Fiscal Outlook Reaffirmed
For fiscal 2013, management believes that it will be able to meet
its earlier annual revenue guidance of $2.36 billion to $2.40
billion, representing a 7% to 9% year-over-year increase. It
expects EPS in the range of $3.64 to $3.71. However, management
expects GAAP EPS in the range of $2.87 to $2.94. Tax rate is
expected to be 28.5%.
Some of the other players in the sector worth mentioning are
), each carrying a Zacks Rank #2 (Buy). Global Payments currently
has Zacks Rank #3(Hold).